At present, without implementing 7th pay commission recommendations,
year on year increase in the expenditure in both pay and pension has
averaged about 11%. Thus real increase on account of increase in pay,
all allowances & pension will be only 12.55% (23.55% – 11% =
12.55%). Real increase on account of Pay & DA will be only 5% (16% –
11% = 5%). It is clearly evident that financial implications will be
very marginal on account of implementation of 7th CPC recommendations.
In the scenario of increase in Government revenue every year and
reduction in staff strength of every year, pay element in Government
expenditure will come down every year with respect to revenue earning or
GDP.

40% fixation benefit was given over 4th CPC scale to 5th CPC scale in general to all the scales.

40% of maximum of 5th CPC scale was given over 5th CPC scale as fixation benefit in general in 6th CPC scales.

But, only around 15% pay fixation benefit is recommended by 7th CPC over 6th CPC pay, which is grievously inadequate.

Table-1 given below gives the comparison on fixation benefit given by 6th CPC & recommended by 7th CPC.

The Multiple Factor of 2.57 proposed by the Pay Commission for Pay
Fixation is totally unjust, inadequate and arbitrary and – keeping in
view the high inflation (in real terms and wage rise in the organized
sector including the PSUs in the two revisions in PSUs since the Sixth
CPC. The Fixation Benefit needs to be at least 40% – as after the last
two Pay Commissions and the Common Multiple Factor may please be fixed
at least (Pay+DA) + 40% of Pay + DA, ie. 3.15 times of 6th CPC basic
pay.

Proposed entry pay as per table explained above (figures rounded off to
next 100). Enhancement given to levels in PB-2 as recommended by 7th CPC
as per Job requirement, responsibilities and accountability:

Finmin appoints Chaturvedi in Pay Commission implementation cell

Chaturvedi, a 1987 batch IAS officer of Madhya Pradesh cadre, has
been appointed to the post under Department of Expenditure in the
Finance Ministry.
He is presently working as Resident Commissioner in Madhya Pradesh Bhawan, New Delhi.
Chaturvedi will hold the charge for five years as Joint Secretary in
Finance Ministry but one year in Seventh Pay Commission implementation
cell, an order issued by Department of Personnel and Training said.
The Cell is processing to implement the “accepted recommendations of the Seventh Pay Commission”,
Besides Joint Secretary, the Cell have nine officials and staff,
including a Director level officer and two under-secretary level
officers.
The recommendations of the Seventh Pay Commission that will benefit
47 lakh central government employees and 52 lakh pensioners, which will
impact the Central Budget by Rs 73,650 crore and the Railway Budget by
Rs 28,450 crore.
The 900-page report of the Seventh Pay Commission headed by Justice A
K Mathur was presented to Finance Minister Arun Jaitley on November 19
with a recommendation that the new scales be implemented from January 1
next year.
The panel recommended a 14.27 per cent increase in basic pay, the
lowest in 70 years. The previous 6th Pay Commission had recommended a 20
per cent hike which the government doubled while implementing it in
2008.
The 23.55 per cent increase includes hike in allowances.
The minimum pay has been recommended to be raised to Rs 18,000 per
month from current Rs 7,000 while the maximum pay, drawn by the Cabinet
Secretary, has been fixed at Rs 2.5 lakh per month from current Rs
90,000. For the Secretaries it has been fixed at Rs 2.25 lakh as against
Rs 80,000 currently.
In a significant recommendation, the report favoured introduction of a
health insurance insurance scheme for staff and pensioners and doubling
the gratuity ceiling to Rs 20 lakh.
The Centre has expressed confidence that the implementation of the
recommendation will not lead to a breach in the fiscal deficit targets.
Minister of State for Finance Jayant Sinha had said: “We are
confident that we will be able to stick to fiscal consolidation roadmap
even with what the Pay Commission recommended. The roadmap that we have
put together is taking into account what the impact of the Pay
Commission would be”.